Organic Wine Market - Forecasts from 2022 to 2027

The organic wine market was evaluated at around US$7.049 billion during the year 2020 and is expected to grow at a CAGR of 1.58% to reach a market value of US$7.869 billion by 2027.

As the term suggests organic wine is made from grapes that are grown organically. This means that grapes, which are chosen to manufacture organic wine, are grown using practices that do not involve the use of synthetic fertilizers, pesticides, or any growth modifiers. The organic wine market growth is majorly being driven by rising awareness among people, in many countries, regarding the benefits of consuming organic foods and beverages. Japan, for instance, has been witnessing a continuously increasing popularity of organic foods for more than a decade.

According to information from the Japanese Ministry of Agriculture, Forestry and Fisheries (MAFF), the domestic production of plant-based, non-processed organic food in Japan stood at 29107 metric tons in 2005. This figure witnessed a continuous increase over the next ten years and stood at 42386 metric tons in 2015. This growth of around 46% points toward the increasing inclination of the Japanese toward organic foods. Not just in developed economies, a large population is often considered aware of best practices and their benefits. Many developing economies are also showing a significant increase in awareness levels of people about the health benefits of organic foods and beverages. This increases the adoption of organic wine among people, thus propelling the market growth. The market growth is also being driven by the growing disposable income of people in many countries across the globe. Growing health concerns is also boosting the consumption of organic wine among people. Organic wine is free from additives such as sulfur, fining, and yeast nutrients. With the growing popularity of vegan diets and chemical-free food and beverage products, this factor will continue to pave the way for the growth of the global organic wine market.

The global organic wine market has been segmented based on product, distribution channel, and geography. Based on the product, the market has been segmented as an organic still wine and organic sparkling wine. The global wine market has also been classified by distribution channels as online and offline.

Market players are expanding their customer base by way of various growth strategies to maintain their global market position, thereby driving the market growth. For example, Spar has recently launched a range of organic wines under the new brand Orbis. The first two varieties that will be available include Orbis Organic verdejo sauvignon blanc and Orbis Organic tempranillo and shiraz, at a promotional price of £7. Biagio Cru & Estate Wines is also launching the first offering of its V2G (Vine to Glass) line of wines in the United States. The range is USDA (United States Department of Agriculture) certified and is free of pesticides, preservatives, and herbicides. Also, the French wine range is sulfate-free and gets better with age, unlike most organic wines on the market presently. Chile’s largest organic wine producer, Emiliana, has recently acquired a 292-hectare estate called El Trigal. The new property is currently uncultivated, and the company plans to start planting the land in October/November 2021. In February 2020, Tamburlaine Organic Wines acquired the Cumulus winery facility at Cudal, spreading itself across the Orange Wine Region. The growing interest of Hollywood celebrities in the organic wine business contributes to the growth of the global organic wine market. For example, Cameron Diaz, the well-known Hollywood actress, and author have recently entered the wine business with the launch of the clean wine brand - Avaline - in collaboration with the entrepreneur Katherine Power. The range comprises two organic wines in white and rose variants and are made with organic grapes.

By geography, Europe holds a significant share in the global organic wine market

Geographically, the global organic wine market is classified into five major regional markets- North America, South America, Europe, the Middle East and Africa (MEA), and Asia Pacific (APAC). Europe accounted for a significant share of the global organic wine market. Increased consumption of wine in European countries, along with the high focus on environmental sustainability, is the major factor behind the growing European organic wine market. Wine is one of the most popular alcoholic beverages in this region, with the consumption of wine in France alone more or less equal to the amount of wine consumed in the United States. Furthermore, the region is the world’s largest producer of wine which makes this alcoholic beverage more easily accessible. North America also holds a noteworthy market share on account of the increasing demand for organic food and beverage products. The growing population who are health conscious in countries like the United States and Canada is driving up the demand for organic wine in the North American region. High disposable incomes and increasing adoption of promotional and marketing strategies will further support the growth of the organic wine market in North America during the forecast period. Moreover, wine manufacturers are also focusing on the diversification of their organic wine portfolio to capture a significant share in this emerging business segment while maintaining their market position, thus positively impacting the overall market growth in this region. Asia Pacific (APAC) and the Middle East and Africa (MEA) will witness a decent compound annual growth rate during the projected period owing to the increasing demand for organic wines across the restaurant sector.

Market Players and Competitive Intelligence

Prominent key market players in the global Organic Wine market include Bronco Wine Company, Casella Cellar, Harris Organic Wines, Avondale, ELGIN RIDGE WINES, The Organic Wine Company, King Estate Winery, Emiliana Organic Vineyards, Frey Vineyards, Biagio Cru & Estate Wines, L.L.C, SPAR (UK) Limited and Domaines Auriol. These companies hold a noteworthy share in the market on account of their good brand image and product offerings. Major players in the global organic wine market have been covered along with their relative competitive position and strategies. The report also mentions recent deals and investments of different market players over the last two years.

Recent Developments

E. & J. Gallo Winery announced in January 2021 that it had completed its acquisition of more than 30 wine brands from Constellation Brands Inc. On December 23, 2020, the Federal Trade Commission authorized Gallo and Constellation's agreement to close.

Winc, Inc., a distinctive platform for growing alcoholic beverage businesses, announced the launch of Wonders, a no sugar, organically, sustainable wine & core brand in the Winc portfolio, which will be available in April 2022. The brand's first release will feature red, white, and rosé varietals, and it will be available on Winc.com, followed by in-store availability shortly after.

Villa Maria, a New Zealand estate, plunged into the organic wine market in February 2021, with the debut of its first organic wine range, intending to become 100% organic by 2030. The 100% BioGro certified Earth Garden range was designed in response to a rapidly growing customer interest in organic wines.

COVID-19 Impact

The forced shutdown of on-trade wineries in different nations, such as the United States, the United Kingdom, & India, to restrict the spread of COVID-19, had a resilient impact on the organic wine business. The pandemic situation, on the other hand, may help the wine business reclaim lost consumer attention. According to reports, total wine volumes are expected to increase by Y-o-Y as more people buy wine to drink at home, particularly in European & North American countries.

Segmentation

By Product

• Organic Still Wine
• Organic Sparkling Wine

By Distribution Channel

• Online
• Offline

By Geography

• North America
• USA
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Europe
• Germany
• France
• Italy
• United Kingdom
• Spain
• Middle East and Africa
• Saudi Arabia
• UAE
• Asia Pacific
• China
• Japan
• India
• Taiwan
• South Korea
• Indonesia
• Australia